The weekly sentinel. [volume] (Winston-Salem, N.C.) 1886-1887, 1887-04-28
4 BUILDING AND LOAN.
AN ASSOCIATION THAT WE NEED
WINSTON.

A Practical Illustration of Its Value to
a Communicative Will Take the
Matter In Hand and Work it UP
The SENTINEL has printed many
columns Of matter urging the import
ance of the organization in Winston
Salem of building and loan associa-
ton, but The SENTINEL never tires
in a good cause, and it shall therefore
keep on urging this valuable factor
with persistency that must eventu-
ally reap the desired results.
The great city Of Philadelphia
claims the proud distinction of having
more citizens who own their own
dwellings than any other city in
America; it is therefore called, not
inappropriately, TIE "Home City"
The above state of affairs was brought
about by building and loan associa-
| tions. Here Is where these useful or
ganizions had their first inception
where they were brought up to the
highest state of efficiency, and where
they now flourish most. Their good
effects are apparent everywhere one
goes in the Quaker City. The neat
cottage, the comfortable apparel, the
contented faces, the industrious move
ments Of the people, all sing in loud
commentator of the building and loan
association.
These organizations have succeeded
in Wilmington, Charlotte, Salisbury
and doubtless many other places in
the State. We must have one here,
and it is question of time only when
it will be forthcoming.
The Salisbury Herald, which has
contributed much towards shaping the
present sentiment in that place favor
able to the building and loan associa-
tons, presents an illustration which
shows so clearly the practical value of
these institutions, that we present it in
full. The Herald says:
GA. IS renting house near the
centre Of town at ST. month. He
pays in one year $50, and in ten years
5000 rent for house and lot worth
$3.50 The lot being worth S400 and
and the house $3.50.
s'B. buys a lot in Brooklyn or Jer-
sey City and puts up a house on it
that costs $3.50. His house, lot and
fence, and in some instances his we'll,
cost altogether only $500. He bor-
rows $500 from the Building and
Loan, and pays it sS4 year and pays
So year interest on the other hun
dred. At the end of three years the
man he bought the land from requires
him to pay the principal due him,
500. He settles with the Building
and Loan, and is allowed S166 for his
stock, leaving his debt to the Building
and Loan 1884. He then takes new
shares and borrows ON them $40.
With this amount he pays hisIold debt
to the Building and Loan, the 500
that he owed, and repays himself the
IS that he has paid out in three years
exceeding what his rent would have
been. He now pays to the Building
and Loan 1920 year for six years,
which is $1,000 year less than his
rent would have been, and at the end
of that time he is out of debt. This
$1,000 a year for six years, in all
S64.S0, would have paid for his insur-
ance and taxes for nine years. Thus,
at the end of that time, ne has not paid
a cent more than he would have paid
in rent, and the house is his own. At
the end Of ten years he has saved his
house, and $50 less one years insur-
ance and taxes, while the other man
has paid 5000 rent and has nothing to
show for it.
In recent issue of the same paper
it says:
GIN a few days more the books,
which are now open for subscri ptions
to stock in the Third Series, will close.
J As soon as they do, some of our peo-
| pie will take notion to build houses
It will be impossible to get a loan
from this association to help them be-
fore next winter unless they either
own stock already or buy it. If they
undertake to buy it, it will be as it
was before when the books were closed,
they will have to pay we'll for the
stock and do much persuading to get
| it. This institution now has 1900
| shares of stock. That is to say, it is
raising fund of ONE HUNDRED AND
TWENTY THOUSAND DOLLARS to build
up Salisbury. They are paying it in
at the rate of one per cent. every four
weeks, and they have now loaned out
nearly $4,000"